Goodwill Impairment Identify Four Principles Covered in the Accounting Literature for Accounting

question 8

Essay

Goodwill impairment
Identify four principles covered in the accounting literature for accounting for goodwill impairment that were provided by the FASB.

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Definitions:

Cost Drivers

Factors that cause a change in the cost of an activity, such as machine-hours, labor-hours, or quantity of materials.

Activity Variances

Differences between planned and actual costs arising from changes in activity levels in various cost centers within a business.

Cost Drivers

Factors that cause a change in the cost of an activity, used to assign overhead costs in activity-based costing systems.

Vocational School

An educational institution that provides specialized training and education targeted toward particular careers or trades.